Tips for Pricing Handmade Items to {Actually} Make Money
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Are you crafty? Do you sell your wares? Gearing up for the gifting season, us crafters are scrambling to finish up our own projects before taking and completing orders; hopefully earning a little extra cash in the process. If you’re anything like me, that is. My orders list is only growing and I think I need to take the next two weeks off just to get it all completed. It’s definitely a love/hate relationship.
If you are looking to sell your handmade goods, it is inevitable that you second guess yourself on pricing. What is enough, what is too much? Do not undervalue your work, skill OR your time. If your prospective buyer can not find the value in your item, move on honey because someone else will.
Crochet (my preferred craft) takes time to learn and time to master. It is a skill that other people do not have. If they did, they would be crocheting their own gifts, now wouldn’t they?
Pricing handmade items should not be a mystery or a guarded secret. Listed below are the most common questions I get regarding pricing. Remember that buyers that understand the cost of both the materials and your time will pay you what the item is worth.
Tips for Pricing Handmade Items to {Actually} Make MoneyÂ
I have heard all kinds of formulas for pricing your handmade items, but I’ll tell you what is easiest and what works for me. I set my price at 3x the cost of materials. (sometimes 2x depending on difficulty of the pattern/project) I use the “regular” price, even if I used a coupon and it was on sale. For example, if I needed two skeins of yarn for a particular scarf, and the yarn is $5 regular price, that is $10 in materials. I would charge $30 for the scarf.
Common questions I get/comments I hear about pricing handmade items:
1. I enjoy (insert your craft here) so I don’t need to earn a lot from it.
I enjoy crocheting myself, but if I get twenty orders for the same hat, I can guarantee you that by the time I finish #6 I’m going to hate that freakin’ hat with 14 more to go. Charge what it is worth because if you don’t you’ll hate yourself with every single stitch you make. Been there, baby. If you’re making them to make them and the item does not sell well, you could always offer a “sale” but it is hard to raise your prices if you start too low.
2. I don’t think people are going to pay that much.
If people don’t value your work, that is not your problem; it is theirs. If you find that you’re not receiving many orders, try branching out, post for-hire listings in virtual yard sale groups or post more on your Etsy page or on your personal Facebook page.
3. Always request half payment up front.
I can not even begin to tell you how many times I’ve had buyers back out on me, or “forget” that they ordered the week before. This is exactly why I will not go buy the yarn and supplies needed for a project unless: I implicitly trust the person (ie: my mom, lol!) OR I have received half-payment up front. Collect the other half when they pick up/you ship their order. This way if they DO back out or “forget”, you’re not out the cost of supplies.
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4. I made it forever ago, so I’ll discount it to get rid of it.Â
When you made the item is not the point. You made it, you bought the supplies for it, you sell it for what it is worth. Period. If a customer’s first experience with you involves you seriously undervaluing your work, they will have sticker shock the next item they purchase from you (at what the item is actually worth!). You are only hurting future sales if you do not charge what the item is worth – no matter when you made it.
5. I feel like I’m ripping people off if I charge what I think it’s worth.
This is a skill that your buyer does not have. They are paying for your skill as well as the item. If they could do it themselves, they would (unless they literally do not have the time). Think of it as: I have a toothache, and I do not know how to fill the cavity myself (or pull it). Therefore, I go to the dentist and I pay the dentist for their time and work. This is not even a question when it comes to a professional; so why are you any different? It took time to learn your skill as well.
6. It didn’t take long to create this item, so I’m not going to charge much for it.
All this means is that you’re getting better at your craft, not that the value is any lower because it took you less time. Again, I go off of how much the materials cost me, regular price. I can crochet a large blanket with mega bulky yarn in a few hours, but if the yarn cost me $50 to purchase (mega bulky is expensive, y’all, and you don’t get much!) I will absolutely charge $150 for the blanket. Will I sell one? Maybe, maybe not. But if I do get commissioned for one, I’ve got the $75 up front to cover the yarn cost. (see #3 above)
7. I already had the materials.
So? It doesn’t matter when you bought the yarn, or where you got it (if it was gifted to you etc). It is the cost it would take to replace the item that you need to take into account. If you use this yarn now, you’ll need to spend $15 to replace that yarn tomorrow. Make sense?
By staying consistent with your pricing, your repeat customers will be just that: repeat customers.
Did I miss anything? Any other tips you’d like to share? I’m ready! Just leave them in the comments and we’ll continue the discussion.
See my favorite yarn hacks and crochet tips before you go:
Use Industrial Clips for Yarn Bobbins in Crochet and Knitting
How to Create a Straight Seam When Crocheting in the Round
16 Ways to Save at Michaels
How to Weave in Yarn Ends {So They Don’t Come Out}
How to Soften Economical or Scratchy Yarn
How to Remove Wax from Yarn
9 Tips for Traveling with Crochet
Why Size Matters in Crocheting and Knitting
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